September

 3   there  was  a  termination  law  but  the  old  termination  law  did  not  provide  for  
security   of   tenure.   The   old   termination   law   merely   provided   what   is   called  
4th  exam  coverage  :  Termination   the   MENSA   -­‐   1   month   salary   for   those   who   are   terminated   to   help   them  
bridge   the   gap   between   no   work   and   looking   for   work   and   finding   a   new   job.  
Tonight   we   begin   with   Termination   Law   (Book   Six).   Book   6   begins   with   279   That   is   the   purpose   of   the   MENSA.   For   certain   types   of   employment,   you  
but   actually   it   is   294,   now   that   it   has   been   renumbered.   I   think   Rex   cannot  be  terminated  unless  you  are  granted  an  extra  1  month  pay  -­‐  that  is  
Bookstore's   numbering   is   incorrect,   check   your   codals.   The   SC   and   Azucena   not  security  of  tenure.    
have  the  same  numbering.  
What  is  Security  of  Tenure  ("SOT")?  It  is  the  right  of  an  employee  who  has  
Box  6  Termination  Law  is  an  implementation  of  security  of  tenure  right  found   been   engaged   without   a   term/engaged   open-­‐ended   to   continue   in  
in  Art.  XIII  Sec  3  of  the  Constitution.     employment   indefinitely   subject   to   the   condition   that   no   just   and   authorized  
cause  supervenes.  
Section  3.  The  State  shall  afford  full  protection  to  labor,  local  and  overseas,  
organized   and   unorganized,   and  promote   full   employment   and   equality   of   What  is  the  opposite  of  security  of  tenure?  it  is  employment  at  will.  It  means  
employment  opportunities  for  all.   that  where  an  employee  is  engaged  without  a  term,  either  party  (employer  
or  employee)  may  terminate  the  contract  at  anytime,  with  or  without  cause.    
It   shall   guarantee   the   rights   of   all   workers   to   self-­‐organization,   collective  
bargaining  and  negotiations,  and  peaceful  concerted  activities,  including  the   In   the   US,   there   is   no   SOT.   What   is   followed   is   employment   at   will.   In   the  
right   to   strike   in   accordance   with   law.   They   shall   be   entitled   to   security   of   Philippines,   there   is   SOT.   So   you   cannot   terminate   an   employee   if   he   is  
tenure,   humane   conditions   of   work,   and   a   living   wage.   They   shall   also   without   a   term,   unless   there   is   a   just   or   authorized   cause.   90%   of   labor   cases  
participate  in  policy  and  decision-­‐making  processes  affecting  their  rights  and   are   termination   cases   because   Filipino   employees   begin   to   complain   only  
benefits  as  may  be  provided  by  law.   after  they  are  terminated.  10%  are  money  claims,  labor  relations,  etc.    

Termination  law  is  a  very  short  law,  very  easy  to  master.    
The   State   shall   promote   the   principle   of   shared   responsibility   between  
workers   and   employers   and   the   preferential   use   of   voluntary   modes   in   All  you  have  to  do  is  to  ask  3  questions:  
settling   disputes,   including   conciliation,   and   shall   enforce   their   mutual  
compliance  therewith  to  foster  industrial  peace.   1.  is  there  authorized  or  just  cause?  

2.   has   there   been   procedural   due   process?   The   Labor   Code   prescribes   a  
The   State   shall   regulate   the   relations   between   workers   and   employers,   particular  procedure  by  which  one  can  measure  if  the  termination/dismissal  
recognizing  the  right  of  labor  to  its  just  share  in  the  fruits  of  production  and   is  lawful.    
the   right   of   enterprises   to   reasonable   returns   to   investments,   and   to  
expansion  and  growth.   3.   is   the   penalty   proportionate   to   the   cause?   This   is   with   respect   to   the  
remedies.   If   there   has   been   illegal   dismissal,   then   there   has   to   be  
You   know   of   course   that   the   Labor   Code   PD   442   came   into   effect   on   reinstatement,  full  backwages,  return  to  seniority,  etc.    
November  1,  1974.  Before  that,  there  was  no  security  of  tenure.  Before  that  
 

LABOR STANDARDS 4th Exam 2013 | Camello Solis Juyo Cuabo 1  

The  notes  I  have  given  you  just  cover  the  first  question  -­‐  is  there  cause?  The   If  I  give  an  answer  to  my  question,  you  could  not  justify  SOT.  
cause  can  either  be  just  cause  or  authorized  cause.    
 
 
The   unions   in   Europe   are   so   powerful   that   they   can   get   from   collective  
What  is  the  difference  between  a  just  cause  and  an  authorized  cause?   bargaining  health  benefits  to  retired  employees.  The  employer  must  pay  for  
the   health   benefits   of   the   retired   employees.   Can   you   imagine   that?   The  
A  JUST  CAUSE  is  due  to  the  fault  of  the  employee.  If  you  are  found  to  have   United  Auto  workers  in  the  US  have  retirement  benefits  until  death.  Retired  
just  cause  then  you  are  dismissed  without  benefits.     na   sila,   employer   is   still   paying   for   their   health   benefits.   So   what   has  
happened?   The   health   liabilities   of   GM   Motors   to   retired   employees   are  
AUTHORIZED  CAUSE  is  cause  NOT  attributable  to  the  fault  of  the  employee.    
bigger  than  the  total  assets  of  Toyota.  That's  why  it  went  bankrupt.  So  that  is  
Example:   Loss   on   the   part   of   the   employer,   application   of   labor   saving   one  reason.  
devices,   computerization   -­‐   so   that   there   is   no   longer   any   need   of   employees.  
 
That  is  not  the  fault  of  the  employee.    
The   second   reason   is   this:   it   is   not   accepted   by   economists   that   there   is   such  
If   there   is   authorized   cause,   you   are   terminated.   There   is   a   difference  
a   thing   as   structural   unemployment.   The   mark   of   a   good   economy   is   that  
between   dismissal   and   termination.   DISMISSAL   is   for   just   cause.  
there  is  structural  unemployment.  There  is  a  segment  of  the  work  force  that  
TERMINATION   is   for   authorized   cause.   Although   the   SC   interchanges  
necessarily  must  be  out  of  work.  Why?  Because  if  there  is  none,  the  economy  
dismissal  and  termination.    
is  not  progressive.  Let  us  trace  the  receptacle  that  is  used  to  cook  rice.  The  
  original  receptacle  to  cook  rice  is  an  earthen  pot.  What  happened  when  the  
kaldero  was  invented?  All  those  workers  who  knew  how  to  make  the  earthen  
Dismissal  implies  just  cause.  And  just  causes  are  listed  in  296,  formerly  282.   pot  were  out  of  work.  Is  the  kaldero  an  improvement?  Yes.  It  must  be.  Ang  
Authorized   causes   are   listed   in   297,   formerly   283.   Now,   I   leave   the   kaldero  hindi  na   mabuak.   What   happened  when   the   kaldero   was   replaced  by  
commentators   to   comment   on   these   standard   causes.   You   read   up   your   aluminum   pot?   The   kaldero   workers   lost   their   jobs.   What   happened   when  
commentators.  What  I  put  down  in  the  notes  are  other  causes,  which  are  not   the  aluminum  pot  was  replaced  by  rice  cookers?  The  aluminum  pot  workers  
discussed  at  length  by  the  regular  commentators.  Because  the  list  in  282  and   lost  their  jobs.  As  there  is  improvement  in  technology,  there  must  be  people  
283   are   not   exhausted.   There   are   other   causes,   and   I   can   think   of   16   other   who   will   be   out   of   work.   Otherwise,   your   economy   is   not   progressing.   That   is  
causes.   what  is  called  structural  unemployment.    

   

Let   us   discuss   the   basic   principles   of   SOT.   I   will   tell   you   my   bias   -­‐   I   do   not   So,   the   policy   of   full   employment   is   a   policy   that   will   remain   in   words.   It  
believe   in   SOT.   An   economy   that   is   founded   in   SOT   is   a   defeated  economy.   cannot   be   complied   with.   There   will   always   be   a   certain   number   of   people  
Why?   Even   your   parents   are   not   obliged   to   support   you   perpetually.   Unsa   pa   who  will  be  out  of  work.    
kaha  ang  employer?  You  tell  me,  that  is  philosophical.  No,  that  is  economical.  
 
LABOR STANDARDS 4 Exam 2013 | Camello Solis Juyo Cuabo
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So,   are   you   going   to   penalize   an   employer   when   he   has   to   bring   in   new   HELD:   The   present   Constitution,   as   noted,   expanded   the   scope   of   the  
workers  with  new  skills  because  there  has  been  a  particular  evolution  on  its   protection   to   labor   mandate   by   specifying   that   the   State   shall   assure   the  
product?   If   you   penalize   the   employer,   then   what   will   happen   to   that   right   of   workers   to   security   of   tenure.   Subsequently,   in   Almira   v.   B.   F.  
employer  will  be  the  same  thing  that  will  happen  to  many  of  these  bankrupt   Goodrich   Philippines,   it   was   the   ruling   of   this   Tribunal   that   even   where  
employers   proliferating   now.   Take   for   example   what   happened   to   Nokia.   disciplinary   action   against   an   employee   is   warranted,   "where   a   penalty   less  
They   have   all   these   workers   making   the   same   handset   they   used   to   make   punitive   [than   dismissal]   would   suffice,   whatever   missteps   may   be  
because   it   was   number   one   in   the   world.   But   Nokia   did   not   know   android.   committed   ought   not   to   be   visited   with   a   consequence   so   severe."   An  
Now  it  is  already  samsung,  iphone  S.  :))  Nokia  is  not  android,  it  is  the  handset   instructor  or  member  of  a  teaching  staff  of  a  university  was  held  to  be  an  
of   yesterday.   So   how   can   you   demand   SOT   in   a   very   fluid   production   on   employee.  As  such,  he  is  entitled  to  that  security  of  tenure  guaranteed  by  
economic  status?   the   Constitution.   While   a   faculty   member   such   as   petitioner   may   be  
dismissed,   it   must   be   for   cause.   What   is   more,   there   must   be   clearance   from  
Remember   that   protection   of   labor   was   already   present   in   the   1935   the  Secretary  of  Labor.  So  it  is  provided  in  the  Labor  Code.  
Constitution.  But,  SOT  came  about  only  with  this  1973  Constitution.    
The  stand  taken  by  petitioner  as  to  his  being  entitled  to  security  of  tenure  is  
Now,   if   it   is   already   a   landmark   that   employees   have   SOT,   there   is   an  
reinforced  by  the  provision  on  academic  freedom  which,  as  noted,  is  found  
employee  that  has  double  SOT.  Who  is  that  employee?  That  is  the  landmark  
in   the   Constitution.   While   reference   therein   is   to   institutions   of   higher  
case  of  Montemayor  v  Araneta  University  Foundation  (1997).  The  decision  
learning,   it   was   pointed   out   in   Garcia   v.   The   Faculty   Admission,   Committee    
was  penned  by  CJ  Enrique  and  the  pertinent  passage  i  have  put  down  in  your  
that  academic  freedom  "is  more  often  Identified  with  the  right  of  a  faculty  
notes.    Remember,  it  is  the  teacher/professor  in  the  tertiary  level  education  
member   to   pursue   his   studies   in   his   particular   specialty   and   thereafter   to  
(college  and  above).  It  is  not  the  element  that  is  called  teacher,  it  is  not  the  
make   known   or   publish   the   result   of   his   endeavors   without   fear   that  
highschool   teacher,   but   the   college   professor   who   enjoys   SOT   in   the   Labor  
retribution   would   be   visited   on   him   in   the   event   that   his   conclusions   are  
Code   if   he   has   gained   tenure   and   the   probationary   period   for   teachers   is  
found   distasteful   or   objectionable   to   the   powers   that   be,   whether   in   the  
atleast   4   years.   He   has   that   SOT   but   then   he   also   enjoys   the   SOT   of   those  
political,  economic,  or  academic  establishments.  For  the  sociologist,  Robert  
with  academic  freedom.    
Maclver,  it  is  'a  right  claimed  by  the  accredited  educator,  as  teacher  and  as  
Montemayor  v  Araneta  University  Foundation  (1997)   investigator,   to   interpret   his   findings   and   to   communicate   his   conclusions  
without   being   subjected   to   any   interference,   molestation,   or   penalization  
FACTS:   because   these   conclusions   are   unacceptable   to   some   constituted   authority  
within  or  beyond  the  institution.'   Tenure,  according  to  him,  is  of  the  essence  
Montemayor  was  a  professor  at  the  Araneta  University  Foundation.  He  was   of   such   freedom.   For   him,   without   tenure   that   assures   a   faculty   member  
found  guilty  of  making  homosexual  advances  on  one  Leonardo  De  Lara  by  a   "against   dismissal   or   professional   penalization   on   grounds   other   than  
faculty   investigating   committee.   The   University   applied   w/   the   NLRC   for   professional   incompetence   or   conduct   that   in   the   judgment   of   his   colleagues  
clearance  to  terminate  petitioner's  employment.  Meanwhile,  petitioner  filed   renders   him   unfit"   for   membership   in   the   faculty,   the   academic   right  
a  complaint  w/  the  NLRC  for  reinstatement  and  backwages.  Judgement  was   becomes   non-­‐existent,   Security   of   tenure,   for   another   scholar,   Love   joy,   is  
rendered  in  petitioner's  favor,  but  on  appeal  to  the  Sec.  of  Labor,  the  latter   "the  chief  practical  requisite  for  academic  freedom"  of  a  university  professor.    
found   petitioner's   dismissal   to   be   justified.   Reinstatement   was   no   granted   As   with   Maclver,   he   did   not   rule   out   removal   but   only   "for   some   grave  
but  the  University  was  required  to  pay  the  professor  his  accrued  back  wages.  
LABOR STANDARDS 4th Exam 2013 | Camello Solis Juyo Cuabo 3  
cause,"  Identified  by  him  as  "proved  incompetence  or  moral  delinquency."   September  13,  2013  (First  Hour)  

The   charge   leveled   against   petitioner,   that   of   making   homosexual   advances   Termination  
to  certain  individuals,  if  proved,  did  amount  to  a  sufficient  cause  for  removal.  
The  crucial  question  therefore  is  whether  it  was  shown  that  he  was  guilty  of   There   used   to   be   an   old   Termination   Law,   which   was   effective   before   the  
such   immoral   conduct.   He   is   thus   entitled   to   the   protection   of   procedural   1973   Constitution,   but   the   Termination   Law   did   not   prohibit   termination.   It  
due   process.   The   court   found   that   petitioner   was   afforded   his   day   in   court   simply   mandated   the   payment   of   1-­‐month   salary   to   certain   jobs   or  
and  so  his  dismissal  was  proper.     occupations  if  you  are  terminated.  

The  1-­‐month  salary  is  so-­‐called  mensa,  which  is  supposed  to  tide  you  over  for  
What  is  the  academic  freedom  of  a  professor?  It  is  the  freedom  to  conduct   1   month   to   enable   you   to   look   for   work.   That   is   not   really   the   beginning   of  
his   own   investigation,   his   own   research,   and   to   publish   it   and   teach   the   the  so-­‐called  Security  of  Tenure.  
results   of   his   research   without   any   fear   that   he   will   be   against   any  
established  norm  or  custom.  And  he  cannot  be  penalized  if  what  he  teaches   What   began   the   Security   of   Tenure   policy   in   the   Philippines   was   the   Labor  
is   against   the   accepted   norm.   Because   if   he   is,   then   you   cannot   push   the   Code,  PD  442  which  became  effective  November  1,  1974.  
frontiers  of  learning.    
The   last   time   we   discussed   the   composite   policy   of   Security   of   Tenure,   which  
  is   employment   at   will   defined   as   where   an   employment   does   not   provide   for  
a  definite  term,  then  neither  party  has  the  right  to  terminate  the  same  at  any  
What   happend   to   Galileo,   the   scrientist?   He   was   dismissed   from   the   time,  with  or  without  cost.  
university   because   what   he   taught   was   against   the   standing   norms.   And   it  
took  over  a  thousand  years  for  the  church  to  finally  admit  that  it  was  in  error   So   right   there,   both   from   the   definition   of   Security   of   Tenure   and  
for  century,  silencing  Galileo.  At  that  time,  there  was  no  academic  freedom   employment   at   will,   you   know   that   the   rendition   of   service   to   another,  
so  science  was  curtailed  for  a  thousand  years.     engagement,   employment,   to   render   service   for   someone   may   be  
interrupted   by   a   cause-­‐   it   can   be   just   cause,   which   is   attributable   to   the   fault  
  of  the  employee  or  it  may  be  authorized  cause  because  (it  is)  neutral  to  any  
form  of  employee.  
How  is  the  professor  then  checked?  Who  is  going  to  correct  him  if  authorities  
cannot   correct   him   based   on   accepted   norms?   The   professor/teacher   in   a   Example:  You  may  be  terminated  from  your  employment  with  your  employer  
teritary   level   education   is   corrected   by   his   peers   -­‐   those   who   are   in   the   same   because  of  the  so-­‐called  introduction  of  labor  saving  devices.  
field  doing  research  because  he  will  have  to  answer  to  them.    
The   economists   say   that   this   recession,   part   of   it,   is   really   the   effect   of   so-­‐
  called  computerization.    
So  you  have  the  notes,  go  over  them.  Read  those  cases.   Now,  less  and  less  people  are  hired  to  do  accounting.  So  much  of  the  country  
is  now  taken  over  by  the  machines.  
 

LABOR STANDARDS 4th Exam 2013 | Camello Solis Juyo Cuabo 4  

 
There   are   programs   now   that   generate   the   necessary   financial   records,   In  the  public  sector,  the  employee  is  granted  security  of  tenure.  Is  it  for  his  
reports,  and  summaries.   own  sake?  No.  Engagement  in  the  public  sector  is  not  a  property  right.  Your  
employment  in  the  public  sector,  from  the  president  to  the  lowliest  janitor  of  
What  happened  to  the  bookkeepers,  the  accounting  clerks?     a  GOCC  with  original  charter,  all  of  them  are  holding  a  public  trust,  they  are  
answerable  to  the  public.  
If   you   are   the   executive   and   you   still   need   a   secretary   that   means   you   are  
digitally   illiterate.   Why   do   you   need   a   secretary?   You   have   a   secretary   that   Kanang   gitugyan   nila   na   ilang   trabaho,   gitugyan   na   nila   aron   ilang  
takes  dictation;  you  are  just  prolonging  the  process  when  you  can  just  type   ampingan.   Piniyalan   na   sila.   Aduna   na   silay   tulubagon.   Asa   man   sila  
directly  on  your  own.  There  are  programs  now  with  voice  recognition.   manubag?  Manubag  na  sila  sa  katawhan.  
I   am   not   saying   that   these   programs   are   expensive,   they   can   be   bought   That’s  why  the  Constitution  says  public  officers  must  live  simple  lives.  
straight  from  the  shelf.  
Public   officers   are   accountable   to   the   people.   These   are   not   just   my  
So,   what   happened?   Is   that   the   fault   of   the   accounting   clerk   that   he   or   she   is   exaltations,  that  is  in  the  Constitution.  
terminated   because   the   computer   program   has   taken   over   her.   That   is   an  
authorized  cause.     There   are   two   provisions   in   the   Constitution   that   grants   security   of   tenure   to  
public  employees:  
Authorized   cause   brings   about   termination;   just   cause   brings   about  
dismissal.       Article  Xi,  Section    

Dismissal,  naay  sala;  termination  walay  sala.  What’s  the  difference  between   Employees  in  the  public  sector  shall  enjoy  security  of  tenure.  
the  two?  
Casual  employees  shall  not  be  deprived  of  security  of  tenure.  
In   termination,   there   is   normally   separation   benefits.   Just   cause,   there   is  
none.  This  is  in  the  private  sector.   Why  is  security  of  tenure  granted  to  the  public  sector?  

You   have   studied   Public   Officers,   what   is   it?   When   can   a   public   officer   be   According  to  the  debates  in  the  Constitutional  Convention,  security  of  tenure  
separated   from   service?   Ang   language   sa   public   officers   is   for   cause.   is  granted  to  the  public  sector  for  the  sake  of  public  service.  Why?  
Moingon  gani  ug  for  cause,  sala  na.  
If   security   of   tenure   is   not   granted   to   public   office,   performance   would   be  
Question:  Do  public  employees  enjoy  security  of  tenure?     low.   If   wala   kay   siguro,   pwede   ka   matanggal   sa   trabaho   ugma,   wala   kay  
gana   motrabaho.   Public   service   will   suffer.   That’s   why   they   are   granted  
Answer:  It  is  so  mandated  in  the  Constitution.  It  is  in  the  Constitution  but  the   security  of  tenure  so  that  the  quality  of  public  service  would  be  higher.  That  
question  is,  is  the  security  of  tenure  of  public  employees  the  same  with  the   is  the  reason.  Security  of  tenure  is  granted  for  the  benefit  of  the  public,  not  
private  sector?  NO,  they  are  not  the  same.   the  employee.  

The  security  of  tenure  in  the  private  sector  is  granted  for  the  benefit  of  the  
employee.  Law  protects  the  employee.  

LABOR STANDARDS 4th Exam 2013 | Camello Solis Juyo Cuabo 5  

If   there   is   another   law   creating   your   office   and   abolishing   another,   can   you   The   highest   officer   or   employee   that   enjoys   the   security   of   tenure   is   the  
say   “I   am   granted   security   of   tenure,   therefore,   I   cannot   be   removed   from   regular  employee.  
office.”  Can  you  do  that?  
What  is  a  regular  employee?  Let  me  ask  you  to  consciously  disabuse  yourself  
The   SC   said   you   cannot.   Your   office   is   not   a   property   right   that   you   can   of   the   pedestrian   knowledge   of   what   is   a   regular   employee.   Many   people  
vindicate.   Analogously,   it   can   become   a   property   right   if   somebody   else   mistake  regular  employment  as  having  to  do  with  salary  or  wages.  
usurps  it  and  you  challenge  that  by  quo  warranto  but,  not  because  you  have  
an  innate  right  to  it.   Regular   or   casual   employment   has   something   to   do   with   tenure,   has  
nothing  to  do  with  salary.  
Public  office,  you  can  make  it  official  in  two  ways:    
Papasa  na  sa  inyong  huna-­‐huna.  Bisan  usa  ka  adlaw  ra  ka  patrabahoon  in  a  
1.  By  appointment;  and     commercial,  industrial,  agricultural  or  a  non-­‐profit  NGO,  you  must  be  paid  at  
least  the  minimum  wage.  
2.  By  election.  
Tenure  has  nothing  to  do  with  salary.  Tenure  is  your  security  to  that  position.  
There  is  no  such  thing  as  public  office  by  prescription.  
What   makes   you   regular?   Ang   mga   tao   mosulti,   wa   pa   ko   maregular.   Does  
In  the  public  sector,  if  you  are  suffered  or  permitted  to  work,  you  become  an   the  engagement  make  you  regular?    
employee.  An  employment  contract  need  not  be  express,  it  can  be  implied.  
 
Pay   attention   to   the   Constitutional   provisions   under   Article   XI   because   it   is  
my   submission   that   until   those   provisions   are   amended,   public   employees   Article   294.   Regular   and   Casual   Employment   –   The   provisions   of   written  
cannot   be   granted   the   right   to   strike,   right   to   bargain   collectively.   They   agreement   to   the   contrary   notwithstanding   and   regardless   of   the   oral  
cannot  because  their  salaries  must  be  traced  back  to  law.     agreement   of   the   parties,   an   employment   shall   be   deemed   to   be   regular  
where   the   employee   has   been   engaged   to   perform   activities   which   are  
There   must   be   some   law   that   granted   an   authority   to   draw   up   the   plantilla   necessary   or   desirable   in   the   usual   business   or   trade   of   the   employer,  
for  your  job.   except   where   the   employment   has   been   fixed   for   a   specific   project   or  
What   is   a   plantilla?   In   the   roster   of   tenured   offices,   there   is   this   a   position   to   undertaking   the   completion   or   termination   of   which   has   been   determined   at  
which  is  attached  a  definite  compensation.   the  time  of  the  engagement  of  the  employee  or  where  the  work  or  services  
to   be   performed   is   seasonal   in   nature   and   the   employment   is   for   the  
These  are  all  civil  service  terms.   duration  of  the  season.  

In   Civil   Service   law,   there   are   causes   for   removal.   All   these   causes   are   just   An  employment  shall  be  deemed  casual  if  it  is  not  covered  by  the  preceding  
causes.   paragraph:  Provided,  That,  any  employee  who  has  rendered  at  least  one  year  
of   service,   whether   such   service   is   continuous   or   broken,   shall   be   considered  
We  said  before  that  there  is  a  classification  of  officers  in  relation  to  security   a  regular  employee  with  respect  to  the  activity  in  which  he  is  employed  and  
of  tenure.   his  employment  shall  continue  while  such  activity  exists.  
LABOR STANDARDS 4th Exam 2013 | Camello Solis Juyo Cuabo 6  
 
Does   a   written   contract   determine   whether   you   are   a   regular   employee   or   “Dili  Sir,  regular  na  mi.  Gitudluan  mi  ni  Mr.  Gealon  na  law  student  diha.”    
not?  If  you  are  engaged  to  perform  activities  which  are  usual  and  necessary  
to  the  usual  trade  or  business  of  the  employee.   They   are   not   regular.   There   is   an   exception   in   Art.   294.   “   xxx   except   where  
the   employment   has   been   fixed   for   a   specific   project   or   undertaking   the  
Memorize  that,  you  will  amend  the  law  if  you  do  not.   completion  or  termination  of  which  has  been  determined  at  the  time  of  the  
engagement  of  the  employee  xxx”  
Let’s   see.   The   name   of   the   Crystal   Clear   Glass   Store.   Namaligya   na   sila   ug  
sheet  glass.   It   may   be   usual   and   necessary   to   the   trade   or   business   but   if   it   is   a   project,   it  
is  an  exception  to  the  rule.  
 What  happened  is  that  the  entrance  to  that  store  has  an  awning.  The  awning  
is  about  to  collapse,  so  the  owner  of  the  store  engages  a  person  for  its  repair.   What   makes   a   project?   In   the   case   of  Fernandez   vs.   NLRC,   the   SC   said   that  
there   are   two   kinds   of   construction   workers:   (1)   project   workers   and   (2)  
Take  a  look  at  that.  “Do  you  know  how  to  repair  that?”  Yes.   non-­‐project  workers.  
“Do  you  know  how  to  order  the  necessary  materials?”  Yes.   These   non-­‐project   workers   are   regular   workers   because   they   have   been  
engaged  without  reference  to  particular  project  but,  if  you  are  engaged  and  
“Can  you  do  it  alone?”  No,  I  have  to  call  additional  help.  
from  the  inception  you  were  informed  na  kutob  ka  lang  ani  na  project,  then  
Pagkahuman   niya   ug   trabaho,   giingnan   lang   siya:   “Sige,   human   na   man   ka   you  are  not  regular.  
trabaho.  Maglamano  na  ta.”  Is  he  regular?  
What  makes  you  a  project  worker  is  the  nature  of  your  engagement.  At  least,  
What  is  the  usual  trade  or  business?  Selling  sheet  glass.  Does  the  work  of  the   you  were  informed.  
carpenter   involve   selling   sheet   glass?   No.   So,   he   is   not   a   regular   employee.  
Does   the   project   employee   enjoy   security   of   tenure?   What   does   the   last  
The   performance   of   the   carpenter   there   is   not   usual   or   necessary   to   the  
sentence  say?  
selling  of  the  sheet  glass.  He  is  not  a  regular  employee.  
“xxx   Provided,   That,   any   employee   who   has   rendered   at   least   one   year   of  
Put  it  in  another  context.  EEI,  Engineering  Equipment,  Inc.,  one  of  the  biggest  
service,  whether  such  service  is  continuous  or  broken,  shall  be  considered  a  
construction  contractors  in  the  Philippines.    
regular  employee  with  respect  to  the  activity  in  which  he  is  employed  and  his  
Assume   now   that   EEI   has   won   a   contract   to   construct   one   of   the   buildings   of   employment  shall  continue  while  such  activity  exists.”  
Ateneo.    
What  is  the  activity?  Carpentry.  Wala  pa  man  mahuman  ang  carpentry.    
There   is   a   foreman   from   EEI   Manila   that   flies   in   here   and   puts   up   a   sign,  
You   must   distinguish   clearly   what   the   activity   is.   There   are   many   kinds   of  
“Wanted:   experienced   carpenters,   masons,   electricians,   apply   now.”   Naa  
carpenters   –   rough   and   finishing.   Finishing   carpenters   do   doors,   cabinets,  
siya’y  gamay  na  lames  diha,  he  starts  hiring  them  one  by  one.  Sugod  sila  ug  
partition.  When  they  are  finished,  they  are  let  go.  
construct   diha.   After   a   year   and   a   half,   the   building   is   finished,   moingon   siya:  
“Karong  hapona,  katapusan  na  lang  ninyong  trabaho.”   In  fact,  there  is  a  decided  case  in  the  SC  that  provided  that  the  termination  of  
a   project   must   be   reported   together   with   the   list   of   all   the   employees  

LABOR STANDARDS 4th Exam 2013 | Camello Solis Juyo Cuabo 7  

attached   to   the   project.   Failure   to   do   that,   the   assumption   is   that   they   are   For   planters,   the   planting   season   is   once   every   three   years.   For   harvesters,  
regular  employees.     the  harvesting  season  is  once  every  ten  months.  

Project   employees,   at   the   inception,   must   be   told.   The   duration   of   the    

project  must  be  known  to  them.  At  the  end  of  the  project,  the  termination  of  
the  project  must  be  reported  with  the  Department  of  Labor.     September  13,  2013  (Second  Hour)  

There   is   also   another   exception,   seasonal   employees.   You   will   realize,    

According  to  the  SC  that  there  are  two  kinds  of  seasons:  (1)  Natural  season  
and  (2)  Industrial  season.  Christmas  is  identified  as  an  Industrial  Season.     OCTOBER  11  

In   the   manufacture   of   softdrinks,   Christmas   season   begins   a   month   before   PROCEDURE  FOR  TEMINATION/DISMISSAL  
Christmas.   They   hire   30%   more   of   the   people.   The   additional   30%   of   the  
work  force  are  seasonal  workers.  At  the  inception  they  are  told,  at  the  end  of     I   WOULD   LIKE   TO   BRING   YOU   TO   THE   PROCEDURE   INVOLVED   IN  
the   season,   they   are   let   go.   They   are   not   fired.   It   only   means   that   the   season   TERMINATION.  The  procedure  for  termination  is  different  depending  on  the  
has  elapsed.  There  is  no  separation  pay.   cause.  If  it  is  just  cause,  cause  that  is  attributable  to  the  fault  or  guilt  of  the  
employee  then  the  procedure  is  longer.    
An   example   of   a   natural   season   is   the   sugar-­‐milling   season.   It   is   anywhere  
between  6-­‐8  months.    

In  our  region,  there  are  3  major  sugar-­‐milling  companies.   JUST  CAUSE  (PROCEDURE)  

There   is   one   in   Malaybalay,   Bukidnon,   Don   Bosco   Sugar   Company.   There   is     The  procedure  is  outlined  in  what  used  to  be  277  but  now  it  Article  
another  in  Matalam,  Cotabato,  Matalam  Sugar  Company.  And  the  third  one,   291b.   You   have   read   in   the   notes   that   I   have   given   you   penned   by   C.J.  
Davao  Sur  Sugar  Milling  Company.   Corona.  Art  291b  is  at  odds  with  the  IRR  of  Book  VI.  

Very  few  realize  that  these  3  are  now  owned  by  one  and  the  same.  They  are     Who   is   the   complainant   in   an   illegal   termination   dispute?   The   one  
owned  by  the  Gutianos  (?),  by  FIlinvest.     who   is   terminated.   Technically   in   a   procedure,   the   one   who   complains   has  
the   burden   of   proof,   this   is   an   exception.   This   is   an   exception   because   the  
How   many   times   do   you   harvest?   Once.   How   long   does   it   take   to   grow   a   Constitution   recognizes   the   right   to   security   of   tenure.   Remember   the  
sugarcane?  10  months.     definition,  the  right  of  the  worker  to  continue  in  employment  when  there  is  
no   fixed   term   agreed   upon   subject   to   the   condition   that   there   is   no   just   or  
How  about  banana?  How  many  times  do  you  harvest  in  a  year?  Technically,   authorized   cause   that   supervenes.   So,   it   is   the   employer   who   must   notify,  
you   harvest   once   a   year   pa,   naa   pa   man   nay   saplings.   After   that,   you   can   informing  the  complainant  of  the  causes  against  him,  it  must  comply  with  the  
harvest  all  year  round.   standards   of   information   and   you   must   detail   the   acts   or   omissions   that  
constitute   the   just   cause.   What   is   the   measure   of   sufficiency   of   the   narration  
there   of   just   cause,   the   measure   is   WON   it   is   sufficient   to   inform   the  
LABOR STANDARDS 4th Exam 2013 | Camello Solis Juyo Cuabo 8  
 
employee   for   him   to   organize   his   defense.   If   you   cannot,   then   you   have    
violated   the   two   notice   rule,   because   by   virtue   of   291b   now   there   is   this   two  
notice  rule.     Instances  where  a  Formal  hearing  is  required  (Perez  vs  PT&T  CASE)  

  What   kind   of   proceeding   should   accompany   this   notice?   IRR   say   1.)  The  written  explanation  of  the  employee  may  also  include  a  request  that  
that  there  must  be  investigation  that  is  trial  type.  That  is  the  decision  where   a   formal   hearing   or   conference   be   held.   In   such   a   case,   the   conduct   of   a  
the  decision  of  Corona  said  that…  xxx  between  the  red  letter  of  the  law  and   formal  hearing  or  conference  becomes  mandatory.  
the  Irr,  it  is  the  red  letter  of  the  law  that  prevailsxxx.  IRR  says,  the  Omnibus  
2.)  Where  there  exist  substantial  evidentiary  disputes  or    
Rules  of  Labor  code.  The  correct  name  is  Rules  to  Implement  the  Labor  Code.  
Who   has   the   authority   to   make   the   make   the   implementing   rules.   Article   1   3.)   Where   company   rules   or   practice   requires   an   actual   hearing   as   part   of  
the   decree   shall   be   known   as   the   labor   code   of   the   Philippines.   It   says   in   employment  pretermination  procedure.    
Article  V    
  What   is   another   example   where   there   is   substantial   complance  
  with   the   law   without   a   hearing?   Let   us   say,   a   bank,   BPI   with   so   many  
branches,  we  are  talking  about  a  cashier,  subjected  to  a  surprise  cash  count,  
Article   5.  Rules   and   regulations.  The   Department   of   Labor   and   other   it   was   found   out   that   he   is   short.   What   is   the   result,   there   is   a   prima   facie  
government   agencies   charged   with   the   administration   and   enforcement   of   case   of   esfafa.   The   moment   there   is   an   audit,   kulang   nang   kwarta   nga   naa  
this   Code   or   any   of   its   parts   shall   promulgate   the   necessary   implementing   diha.   The   conclusion   is   that   you   have   converted   part   of   those   funds   to   you  
rules   and   regulations.   Such   rules   and   regulations   shall   become   effective   private  use.  Evidentiary  wise,  the  complainant  should  prove  the  accusation.  
fifteen   (15)   days   after   announcement   of   their   adoption   in   newspapers   of   The  moment  there  is  prima  facie  case,  the  accused  should  disprove  what  was  
general  circulation.   found  out.  If  he  cannot  then  he  is  found  guilty.  You  know  the  order  of  trial.  
The  complainant  must  prove  his  case  first,  the  respondent  (accused)  produce  
 
evidence   to   disprove   what   the   complainant   has   presented   in   the   court.     In  
  The   Secretary   of   Labor   has   the   authority   to   make   the   illegal  dismissal  cases,  the  complainant  present  his  complainant,  it  is  now  the  
Implementing  Rules  of  Regulations.     employer  who  has  the  burden  that  the  dismissal  is  legal.    

  What  does  C.J.  Corona  say  in  the  decision  of  Perez  vs  PT  and  T  et      A   method   that   will   comply   with   291b   would   be   something   like  
al  case,  en  banc  decision  2009.    the  phrase  “ample  opportunity  to  be  heard”   this.   The   manager   should   write   a   letter   to   the   employee,   “you   are   hereby  
can   be   reasonably   interpreted   as   extensive   enough   to   cover   actual   hearing   or   directed   to   explain   in   writing   why   you   should   not   be   dismissed   without  
conference.   To   this   extent,   Section   2(d),   Rule   I   of   the   Implementing   Rules   of   benefits  for  having  stolen  x  ray  plates  from  the  warehouse  on  or  about  2013”.  
Book  VI  of  the  Labor  Code  is  in  conformity  with  Article  277(b)xxx.  Therefore,   Then   the   employee   will   answer,   “on   those   dates   I   was   on   leave,   I   was   not  
while   the   phrase   “ample   opportunity   to   be   heard”   may   in   fact   include   an   working,   how   could   have   I   stolen”.   The   management   will   then   reply  
actual  hearing,  it  is  not  limited  to  a  formal  hearing  only.  In  other  words,  the   “According  to  the  logbook  of  the  sec  guard,  you  entered  in  the  building,  it  is  
existence   of   an   actual,   formal   “trial-­‐type”   hearing,   although   preferred,   is   the   logbook   of   security   guard.”   The   employee   will   then   answer   back   “   It   is  
not  absolutely  necessary  to  satisfy  the  employee’s  right  to  be  heard.  So  you   true  because  I  entered  the  building  when  there  was  a  downpour,  nisulod  ko  
do  not  need  a  hearing  but  it  must  be  equivalent  to  hearing’.   kay  gikuha  nako  akong  jacket.”  

LABOR STANDARDS 4th Exam 2013 | Camello Solis Juyo Cuabo 9  

    The   store   room   is   in   the   3rd   floor   but   his   office   is   in   the   first   devices   or   redundancy,   the   worker   affected   thereby   shall   be   entitled   to   a  
floor,   the   guard   saw   him   take   the   elevator.   Pagkahuman   atu   wa   na   siya   separation   pay   equivalent   to   at   least   his   one   (1)   month   pay   or   to   at   least   one  
nitubag.   Then   the   employer   will   send   a   2nd   notice   “   you   are   hereby   informed,   (1)   month   pay   for   every   year   of   service,   whichever   is   higher.   In   case   of  
that   this   office,   the   General   manager’s   office,     is   adopting   in   toto   all   the   retrenchment   to   prevent   losses   and   in   cases   of   closures   or   cessation   of  
findings  of  fact  and  recommendation  of  your  supervisor  investigating  you.  So   operations  of  establishment  or  undertaking  not  due  to  serious  business  losses  
you  are  dismissed  without  benefits.  Upon  receipt  of  this  communication,  this   or   financial   reverses,   the   separation   pay   shall   be   equivalent   to   one   (1)   month  
is  your  last  day.  Turn  in  all  your  keys,  then  collect  you  accrued  pay.  And  you   pay  or  at  least  one-­‐half  (1/2)  month  pay  for  every  year  of  service,  whichever  
are  no  longer  allowed  to  be  in  the  premises  of  the  company.”  This  is  akin  to   is   higher.   A   fraction   of   at   least   six   (6)   months   shall   be   considered   one   (1)  
hearing  when  there  is  no  hearing.   whole  year.    

   

AUTHORIZED  CAUSE  (PROCEDURE)   Authorized   cause   procedure   is   file   a   notice   to   employee   and   the   Department  
of  labor  and  at  the  end  of  30  days,  pay  the  benefits.  Not  included  in  the  labor  
  You   give   him   notice.   “In   30   days   from   receipt   you   will   be   code  is  the  sexual  harassment.  That  is  just  cause  Follow  the  procedure  in  just  
terminated   for   redundancy”.   It   is   also   given   to   the   regional   office   of   the   cause.  
department  of  labor.  Authorized  cause  requires  benefits  because  the  cause  
for  termination  is  not  due  to  the  fault  of  the  employee,  so  he  is  entitled  to    
benefits.   What   benefits?   If   it   is   not   due   to   loss,   1   month   salary   or   1   month  
salary  for  every  year  of  service  (a  fraction  of  at  least  6  months  is  considered  1   Remedies  in  Illegal  dismissal  
year)   whichever   is   higher.   This   is   applicable   only   if   not   due   to   loss   example  
redundancy   and   the   engagement   of   labor   saving   devices.   What   if   you   are   1.  REINSTATEMENT  
only  engaged  for  two  weeks,  pila  man  imung  madawat?  1  month  salary.  Kung  
  Remedy   is   found   in   Article   293   (279).   An   employee   who   is  
1   year   ka   nagtrabaho?   1   month   lang   gihapon.   You   should   read   authorized  
unjustly  dismissed  from  work  shall  be  entitled  to  reinstatement  without  loss  
cases  under  Article  297.    
of  seniority  rights  and  other  privileges  and  to  his  full  backwages,  inclusive  of  
  allowances,  and  to  his  other  benefits  or  their  monetary  equivalent  computed  
from   the   time   his   compensation   was   withheld   from   him   up   to   the   time   of   his  
Article   297.   Closure   of   establishment   and   reduction   of   personnel.  The   actual   reinstatementxxx.   So   you   have   been   illegally   dismissed,   the   labor  
employer   may   also   terminate   the   employment   of   any   employee   due   to   the   arbiter   will   order   your   reinstatement.   Sometimes   it   is   no   longer   possible.  
installation   of   labor-­‐saving   devices,   redundancy,   retrenchment   to   prevent   There  are  at  least  5  instances.  
losses   or   the   closing   or   cessation   of   operation   of   the   establishment   or  
undertaking   unless   the   closing   is   for   the   purpose   of   circumventing   the   1.  Employee  dies  during  the  pendency  of  the  case.  In  lieu  of  reinstatement  
provisions   of   this   Title,   by   serving   a   written   notice   on   the   workers   and   the   he  will  be  paid  separation  benefits  (1/2)  month  pay  for  every  year  of  service  
Ministry  of  Labor  and  Employment  at  least  one  (1)  month  before  the  intended   form   the   time   that   he   was   illegally   dismissed   up   to   and   including   the   time  
date   thereof.   In   case   of   termination   due   to   the   installation   of   labor-­‐saving   that  he  dies.  

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2.   The   employee   reaches   the   retirement   age   during   the   pendency   of   the   distinguished   it   from   NRMR   tickets   (Non-­‐Revenue   Must   ride)   kanang   gina  
case.  He  shall  be  paid  separation  benefits  (1/2)  month  pay  for  every  year  of   issue  sa  mga  senators  ug  congressmen.  
service   form   the   time   that   he   was   illegally   dismissed   up   to   the   time   of   his  
retirement.    

3.  The  company  closed.  He  is  given  separation  benefits  (1/2)  month  pay  for   The   citataion   for   PALEA   is   19   SCRA   45   (1967).   Because   of   that   ruling,   you   can  
every  year  of  service  form  the  time  that  he  was  illegally  dismissed  up  to  the   only   have   the   other   items   if   they   are   not   contingent   benefits.   There   was   a  
time  the  company  closed.   ruling   for   teachers   for   instance.   The   school   illegally   dismissed   the   teachers  
and  so  they  were  ordered  to  pay  full  back  wages  but  they  are  only  willing  to  
  pay  them  for  the  periods  where  they  are  teaching  but  not  during  semestral  
breaks.   SC   said,   they   should   be   paid   for   semestral   breaks   including   the  
4.  The  position  is  abolished.  He  is  given  separation  benefits.   ECOLA.  ECOLA  are  given  without  conditions.  
5.   Animosity   and   severe   hatred   between   employee   and   employer.   For    
example   you   are   holding   a   position   conferred   with   trust   and   confidence.  
Globe   doctrine.   Reinstatement   might   not   be   possible.   You   will   be   paid   2.   PICOP   case.   When   you   are   assigned   in   surigao   and   that   you   are   an  
separation  benefits  (1/2)  month  pay  for  every  year  of  service  form  the  time   engineer,   you   are   paid   hazard   pay   which   is   separate   from   the   basic   pay.  
that   he   was   illegally   dismissed   up   to   the   time   judgment   becomes   final   and   When   they   were   transferred   to   manila,   they   questioned   their   transfer   and  
executory.     they   were   declared   as   illegally   dismissed.   Does   full   back   wages   include  
hazard   pay?   NO,   hazard   pay   is   not   included.   Wa     na   may   Hazard   pay   sa  
  manila.  That  is  a  contingent  pay.  152  scra  328  (1987)  
2.  FULL  BACK  WAGES.  Receive  pay  from  the  time  you  were  illegally  dismissed    
up  to  the  time  you  are  reinstated.    
During  the  time  that  the  employee  was  separated  and  the  case  was  pending,  
  the   corporation   was   operating   in   shortended   workweek,   only   three   days   a  
week   for   energy   conservation.   What   does   full   back   wages   mean,   does   it  
What  is  the  meaning  of  full?   mean  full  week’s  pay?  SC  adjusted  the  order  of  the  labor  arbiter;  it  should  be  
less   than   full   because   of   the   shortened   workweek.     Remember   that   before  
1.  PALEA  case.  There  were  several  attendant  illegally  dismissed  by  PAL.  The  
the   case   of   Ferrer   vs   NLRC,   illegally   dismissed   employee   was   only   to   get   NOT  
court  ordered  full  back  wages.  The   attendants  said  that  they  were  not  paid  
full  back  wages  but  wages  equivalent  to  three  years  which  is  the  maximum,  
full   because   it   did   not   include   free   passes.   If   you   have   served   PAL   for   at   least  
that   was   the   rule   by   Teehankee   in   mercury   drug   vs   CIR.   SC   changed   that   in  
5   years   kasakay   ka   bisag   asa   sa   pilipinas   for   free.   So   they   said   it   should   be  
Ferrer  vs  NLRC  after  the  amendment  in  the  RA  6715.  So  now,  the  rule  is  full  
included  otherwise  the  pay  is  not  full.  SC  said  that  it  is  not  included  because  
back  wages.    
it   is   contingent   benefits.   Besides,   if   you   are   going   of   avail   of   that   you   must  
fulfil   several   conditions,   you   write   the   management   and   then   set   certain    
dates  and  you  are  issued  an  NRSS  ticket  (Non-­‐revenue  subject  to  space).  SC  

LABOR STANDARDS 4th Exam 2013 | Camello Solis Juyo Cuabo 11  

3.  DAMAGES   aka  agwanta  aron  ikaw  na  lang  mu  resign  sa  imung  kaugalingon.  In  this  case  
you  will  be  awarded  damages.  
  The  next  remedy  is  for  damages.  You  may  be  entitled  to  damages  if  
the   manner   of   the   dismissal   was   malevolent   with   bad   faith   whimsical    
capricious,  get  all  the  adjectives  from  the  Civil  Code  for  damages.  The  labor  
Issues  on  Immediate  Reinstatement  
code   and   the   Civil   Code   do   not   differ   in   this   aspect.   You   are   entitled   to  
damages,  in  case  of  breach  of  contract,  if  it  was  attended  with  bad  faith  etc…       Now,   there   is   this   controversy   about   immediate   reinstatement.   If  
You  were  illegal  dismissed,  kikasab  an  ka,  gilabay  imung  mga  butang,  gipaka   the   labor   arbiter   makes   a   finding   that   you   are   illegally   dismissed,   that  
ulawan   ka,   naghilak   ka,   dugay   ka   wala   nakatulog   kay   na   hurt   jud   ka.   The   decision   can   be   execution   or   should   be   executed   pending   appeal   i.e.  
dismissal   caused   you   sleepless   night,   serious   anxiety   ,   moral   damages   can   be   immediate   reinstatement.   The   employer   has   two   choices:   he   can   reinstate  
awarded  because  the  manner  of  the  dismissal  was  attended  with  bad  faith.   the   employee   actually   or   reinstate   him   in   the   payroll.   The   issue   is   this,   you  
Labor  arbiter  can  award  that  but  you  must  prove  those.  But  there  is  one  kind   are   reinstated,   suppose   the   NLRC   reverses   the   judgment   of   the   labor   arbiter.  
of   illegal   dismissal   where   damages   is   almost   automatic,   what   is   that?   Is  the  employee  receiving  the  salary  obliged  to  give  back  what  he  received?  
Constructive   dismissal.   Dili   ka   papahawaon   but   you   will   be   placed   in   a   The  answer  is  no.  Because  according  to  SC,  in  Garcia  vs  NLRC,  the  intent  of  
situation   where   the   condition   of   employment   is   intolerable   nga   mu   resign   na   the  law  is  to  put  the  employee  on  equal  footing  with  the  employer.  Pildi  sa  
lang  ka.  The  land  mark  case  there  is  Santa  Ines  vs  NLRC.  Controler  siya,  when   kaso   ang   employer,   maka   appeal   pa   man   siya   because   he   has   all   the  
a   new   interest   bought   the   lumber   company,they   said   we   don’t   need   you   resources.  But  the  employee  has  very  little  resource  to  sustain  an  appeal  so  
behind  that  desk,  you  are  now  to  purchase  logs,  gi  assign  siya  sa  gawas.  He   he  is  placed  in  equal  footing  by  this  immediate  reinstatement  rule  under  the  
was  supposed  to  purchase  logs  but  he  did  not  have  a  log  scaler.  So  siya  ang   law.   Pildi   gani   ka   sa   labor   arbiter,   you   should   reinstate   the   employee   actually  
nagmeasure   sa   mga   logs.   Naglingkod   lang   siya   sa   opisina   niadtu,   or   payroll   wise.   In   Garcia,   SC   said   that   if   it   should   happen   that   no  
airconditioned   pa   ang   iyang   opisina   karon   kay   nagsuklod   sukod   na   siya,   reinstatement   at   all   occurs   pending   appeal   either   actual   or   payroll   and   the  
nagkapangos   pangos   pa,   unya   gi   pneumonia   pa   siya.   So   ni   resign   na   lang   siya   NLRC   reverses   and   the   judgment   comes   out   that   there   has   been   no   illegal  
kay  di  siya  ka  agwanta.  Then  he  filed  a  constructive  dismissal.  There  was  no   dismissal,  the  employee  can  still  collect  the  wages  he  should  have  been  paid  
dismissal  but  there  is  equivalent  of  dismissal.  Why?  Because  your  continued   because   he   should   have   been   reinstated   immediately   after   the   decision   by  
employment  is  rendered  intolerable,  impossible  and  unbearable  that  is  why   labor   arbiter.   Can   you   imagine   that?   SC   is   saying   that   the   employee   can  
you  resigned.  In  the  case  of  De  Leon.  De  leon  was  the  production  manager  of   collect  because  it  is  his  right.    
this   plant.   One   day   the   Board   of   directors   told   him   you   go   on   vacation.   So   he  
toured  around  the  world.  After  one  month,  pag  abot  niya  naa  nay  bag  o  nga    
manager.     “What   happened   to   my   position?”,   they   answered   that   “you   are  
still   the   manager   and   people   will   still   call   you   ger”.   hHe   has   his   old   secretary,   Admission  of  Guilt  by  Employee  
he  has  his  newspaper  every  dayw.  No  more  work.  Was  there  a  reduction  of  
  Suppose   after   you   write   the   employee.   Ordering   the   employee  
salary?   No,   the   same   salary.   Is   his   situation   intolerable?   He   said   that   yes,  
to   explain   in   writing   why   he   should   not   be   dismissed   for   having   stolen   the  
people  will  say  what  is  he  doing  receiving  a  big  salary  doing  nothing.  Finally  
property   belonging   to   the   employer.   Then   the   employee   will   answer   “sir,  
he   resigned   and   filed   an   illegal   dismissal,   the   complaint   is   constructiove  
kaloy  i  intawon  ko,  akong  gi  angkon  akong  sala  kay  na  tintal  ko  sir”.  What  is  
dismissal.  That  is  attended  with  bad  faith.  Gibutang  ka  sa  situation  nga  dili  na  
LABOR STANDARDS 4th Exam 2013 | Camello Solis Juyo Cuabo 12  
 
that?   Admission   of   guilt.   Are   you   still   obliged   to   continue   with   the   carried   out   because   of   a   supervening   fact   where   she   was   found   guilty   of  
procedure?   No,   because   there   is   already   admission.   Sa   Court   gani,   basahon   having  stolen  company  stuff.      
ang  information  unya  binisay  on  pa  ug  wa  kasabot  ang  accused.  What  plead  
you,   guilty   or   not   guilty?   Ug   mu   ingun   siya   nga   guilty,   wa   nay   trial.   So   timan   I    
na  nga,  that  is  one  of  the  exception  to  the  rule  under  the  labor  code  making  
unnecessary  the  investigation  before  you  can  dismiss  somebody.    

SAMPAGUITA  GARMENTS  VS  NLRC  CASE  

  Another   example   is   this,   let   us   say   garments   man   in   the  

assembly   line.   Nadakpan   and   assembly   line   worker   nag   nanguha   ug  
materiales.  So  theft,  he  was  charged  with  the  City  prosecutor.  Can  it  take  the  
place   of   the   investigation   of   the   employer   before   he   can   dismiss?   Can   the  
employer   rely   on   the   prosecutor?   Is   that   enough   for   compliance   in   the  
requirement   of   investigation?   There   are   two   lines   of   decision.   One   says  
sufficient,   the   other   says   not.   Which   is   correct?   The   two   lines   of   decision  
were  differentiated.  If  the  work  of  the  fiscal  is  cursory,  dawat  siyag  affidavit,  
dawat  siyag  counter  affidavit  unya  buhatan  ug  resolution  pirmahan  sa  fiscal.  
There  is  really  no  delving  into  the  issues  deeply.  That  will  not  suffice  to  take  
the  place  of  the  procedure.  However,  if  there  was  an  elaborate  preliminary  
investigation   conducted   in   the   proseutor’s   office   by   which   the   accused   was  
given   so   much   time   and   ample   opportunity   to   be   heard   as   required,   then  
that   takes   the   place.   But   I   have   to   tell   you   this   very   rare   case,   Sampaguita  
garments   vs   NLRC   (G.R.   No.   102406   June   17,   1994).   Mao   ni,   assembly   line  
siya,   nadakpan   siya   nay   gidala,   gi   investigate   siya  sa  companya  found  to  have  
been  guilty  of  theft  so  he  was  dismissed.  The  company  filed  a  criminal  case  
for   theft.   The   employee   on   the   other   hand   filed   an   illegal   dismissal  
complaint.  Duha  n  aka  kaso  ha.  Both  cases  went  to  the  Supreme  Court.  The  
SC   dismissed   petition   of   the   company   and   held   that   there   was   no   grave  
abuse   of   discretion   on   the   part   of   NLRC   when   it   held   that   that   there   was  
illegal   dismissal   and   reinstatement   was   ordered.   On   the   other   hand,   SC  
affirmed   the   decision   of   CA   holding   the   employee   guilty   of   theft.   So   the  
company   said   that   they   should   no   longer   be   obliged   to   reinstate   the  
employee   in   view   of   her   conviction.   SC   says   that   the   decision   cannot   be  

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